ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mixed
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Command
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Market
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Traditional
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Detailed explanation-1: -Some disadvantages could include: Creates scarcity due to an inability to plan for individual needs. Forces government rationing due to inability to calculate demand on set prices. Eliminates market competition, resulting in a lack of innovation and advancement.
Detailed explanation-2: -Less tax revenue than expected to spend on public services. Increased government borrowing – e.g. if demand for medical care and old-age pensions is growing faster than the low rate of economic growth. Possible unemployment if growth is insufficient to create new jobs displaced by technology. Lower inflation rates.
Detailed explanation-3: -Although there is no formal definition for a sluggish economy, the term is often associated with falling consumption, low GDP growth, or rising unemployment. Due to a heightened sense of economic precarity, people may reduce their consumption and increase their savings.
Detailed explanation-4: -High rates of unemployment or underemployment. Increasing inequality, with many not being included in the growth process. High rates of poverty and low growth. Volatile growth dependent on one source. More items